Air India is planning for road shows in India and abroad to attract buyers as the Narendra Modi government is all set to sell the loss-making state-owned airline.
The company has now laid down details of a tender requesting proposals for engagement of advisers and also said that it is planning on "conducting road shows in India and abroad," Mint reported.
The report also suggests that the government is aware of the possibilities of international players showing interest in the airline. So, they may amend rules, which at the present bar international companies from bidding.
On the modalities of strategic disinvestment, timing, and positioning of the strategic sale, merchant bankers will assist and advice the government.
The government will have the option of getting the valuation done by another agency and will also consider the report of the asset value, Mint reported.
"The bidder needs to have at least five years of experience in providing similar advisory services for disinvestment, strategic sale, merger and acquisition activities, private equity transaction etc., and should have advised, handled and successfully completed at least one transaction of merger/acquisition/takeover/strategic disinvestment/private equity transaction of the size of Rs 4,000 crore or more between April 2012 and 30 June 2017," the business daily quoted the release as saying.
The pre-bid meeting will be held by the Finance Ministry's Department of Investment and Public Asset Management (DIPAM) on September 25and final bids from the buyer must reach the department by October 12.
The tender has also outlined the detailed offer — Air India has an operating fleet of 142 aircraft comprising 65 Airbus A-320, 15 Boeing B777, 24 787, 23 737-800, 11 ATRs and 4 B747. The carrier plies in 42 international and 70 domestic destinations.
Low-cost carrier IndiGo's parent company InterGlobe Aviation and Bird Group have already expressed interest in bidding for Air India and have written to the Civil Aviation Ministry.
In July, IndiGo's co-founder Rakesh Gangwal had said that the budget airline is interested in Air India's international operations and that of its low-cost international subsidiary Air India Express.
Currently, Air India has an accumulated debt of about Rs 50,000 crore and staff strength of around 20,000. It earned an operating profit of Rs 105 crore in 2015-16 on total sales of Rs 20,526 crore.
The carrier is owned by the central government and its share capital as on March 31 was Rs 24,425 crore.
Back in June, the Modi government had approved an in-principle sale of Air India. "The Cabinet today gave an in-principle approval to the divestment of Air India," Union Finance Minister Arun Jaitley had said.
